Halving Worries For Miners 🔴
Could Bitcoin halving push US miners offshore? No guarantee halving will be favourable for miners. Bitcoin to seize gold market? Whales go big on Ethereum. MicroStrategy's X account hacked.
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The next Bitcoin halving is pegged for April 24.
What is the halving? Every four years, the number of Bitcoins awarded to miners gets cut in half.
This time around that means rewards will drop from 6.25 to 3.215 Bitcoins per block.
Could this trigger the US mining companies to pack their bags and head to greener pastures overseas?
Read: What is Bitcoin Halving?🌛🌜
Here's the lowdown
Halving worries: Bitcoin miners face a 50% pay cut in April, leading to fears of massive losses for high-cost US companies.
Price plunge risk: If Bitcoin doesn't skyrocket after the halving, many US miners could be squeezed out.
Exodus to cheaper lands: Countries like Ethiopia, Nigeria, Kenya, Argentina, and Paraguay could become new mining hubs thanks to their low electricity costs.
Bitcoin Miners Win Legal Battle
The Texas Blockchain Council (TBC) and Bitcoin mining giant Riot Platforms have secured a temporary win in their legal battle against the US Department of Energy (DOE) and related agencies.
The DOE, through the Energy Information Administration (EIA), tried to collect "invasive" data from crypto miners through a mandatory survey.
The Concerns: TBC and Riot argued the survey
Burdensome: Taking over 40 hours to complete with no compensation.
Risky: Potentially requiring disclosure of proprietary information and carrying legal consequences for not complying.
The Court's Decision: A US judge issued a temporary restraining order (TRO), halting the survey and preventing the EIA from sharing any collected data. The judge felt the DOE hadn't adequately justified the urgency of the survey, potentially exceeding its authority.
What could happen to the price?
Historically, halvings have been followed by price surges.
In 2012, Bitcoin hit $1,000 after the halving, and in 2016, it reached $20,000. The most recent halving, in 2020, even saw Bitcoin break its all-time high of $69,000.
But here's the catch
It doesn't happen overnight. Prices might take months to climb.
This is only the fourth halving, so historical trends might not be guaranteed.
Market analysts are raising caution flags for Bitcoin investors.
A key indicator points to excessive leverage and speculation in the market, which could trigger a sudden price drop, known as a leverage washout.
What's different this time? Institutional investors are in the game. Spot Bitcoin ETFs are attracting big money, which could increase demand.
Block That Quote 🎙️
Riot Platforms, leading Bitcoin mining company
"While Bitcoin prices have historically increased around these halving events, there is no guarantee that the price change will be favourable or would compensate for the reduction in mining rewards."
Riot Platforms throws cold water on the idea that the upcoming Bitcoin halving will automatically benefit miners.
Here's the lowdown:
Halving Cuts Rewards: As expected, the reward for mining new Bitcoin will be halved in April.
Price Hike Not Guaranteed: Riot warns there's no guarantee it will offset the reward decrease.
Profit Squeeze: This could lead to a decrease in revenue for miners, impacting their financial health.
Electricity Woes: The halving is expected to increase electricity demand, making things tougher for miners.
Silver Lining? This pressure could push the industry towards renewable energy and more efficient mining solutions.
Riot Crushes Records in 2023
Revenue surge: $281 million, an all-time high for Riot.
Bitcoin mining: Up 20% to $189 million, making up 67% of total revenue.
Production boost: Mined 6,626 BTC, a 19% increase despite power usage restrictions.
Net loss: Still present at $49.5 million, but significantly lower than 2022's $509.6 million.
Could BTC snatch Gold's glory?
Bitcoin is on the warpath, aiming to snatch a quarter of the gold market, or a cool $500 billion, according to a Fidelity exec.
Target? A quarter of the $6 trillion "monetary gold" market held by banks and investors.
Weapon? The stock-to-flow model, highlighting Bitcoin's limited supply (21 million coins) and increasing value over time.
Timeline? "Eventually," which could mean years based on Timmer's own admission.
But, Bitcoin and Gold often move in opposite directions. Bitcoin sways with risky assets, while Gold shines during market jitters.
Where’s ETF?🚨
Weekly inflows US$598M. Fourth consecutive week of inflows. Year-to-date inflows have now surpassed $5.7B mark. The US saw most of the inflows at US$610M. Grayscale saw further outflows totalling US$436m last weeks👇
Whales making a splash
Whales go big on Ethereum, pushing price towards $3,300.
In just the past few days, they've staked $45.5 million in ETH.
This pushed Ethereum's price up 35% in a month, with bulls eyeing a new resistance level of $3,300.
Levels not seen since April 2022.
$3,300 in sight.
Not all whales are swimming in the same direction
One whale sold 421.6 billion Shiba Inu (SHIB) tokens, taking a significant loss on their investment.
Despite the sale, SHIB's price remains relatively stable, suggesting the wider ecosystem is still experiencing positive developments.
MicroStrategy X account hacked
Hackers hijacked MicroStrategy's X account, tricking users with a phony airdrop for a fake Ethereum-based "MSTR" token.
Hackers posted links on MicroStrategy's X account, leading to a fake website mimicking MicroStrategy.
The fake website lured users to connect their crypto wallets, draining their tokens once they accepted permissions.
Over $440,000 stolen.
Independent investigators estimate losses this high, with one user losing over $420,000 in various cryptocurrencies.
The stolen funds were traced to PinkDrainer, a well-known hacking group.
The Surfer 🏄
OpenSea delisted the Ethereum NFT passes of game developer Fractional Uprising Studios.
US-based OANDA has received approval to offer crypto trading in the UK.
Avalanche experienced a six-hour outage due to a code bug triggered by an influx of inscription minting.
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